By: Doug Rosen
Starting out with the weekly chart I see a combination of bearish and bullish indications. The bearish indication is that price is at a 50.0 fib level overlapped with a 55 and 21 ema. On the bullish side of things I see the 5 ema being carried up with price and it looks like it could cross above the 13 and 21 ema's and a stochastic rolling out of the oversold zone. On the daily chart the 50.0 fib is very noticeable and will be observed, especially since it is overlapped with a daily 233 and 144 ema, not to mention that the stochastic is in the overbought zone. This pair is bullish but that does not say that we cannot get a daily red candle and still be bullish at the same time. Price may very well continue up, but, it could fall a bit first. Moving on to the 4 hour chart which also happens to display my monthly Pivot Points I see that price came up to the monthly R3 then retreated, however, it may just retrace back to the monthly M5 overlapped with the 4 hour 5 ema then could continue onwards. I also want to point out that the 4 hour stochastic is in the overbought zone.
Moving on to the hourly chart which also happens to display my weekly pivot points I can see that the weekly M3 and last week's high are overlapped precisely with each other and the hourly Bollinger band is closed and pointing sharply to the downside. This looks very bearish in nature. Longs should not be considered unless the psychological level of 1.6 is busted.
Finally, on the 15 minute chart we have had a series of higher highs and higher lows and are in the midst of an uptrend, it appears that the 5 ema is crossing below the 13 but price is also trying to make a fib that does overlap with the daily R3 which can be support overlapped with an approaching 55 ema and lower Bollinger band so watch for bullish price action around 1.5950 otherwise, possibly as low as 1.5920 to take a long position and if you miss the opportunity then wait for a break around 1.6010 before considering to take a long.
